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Q.

What is the difference between the demand that is created and the demand that is already present in the society--do they make huge difference in business?

Asked by Arindam Sarkar, 24 Sep '08 09:40 pm
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Answers (2)

1.

Creation of new demand is more important from the bottom line point of view for companies, especially for those engaged in manufacture and marketing of FMCG [fast moving consumer goods] , electronic goods, textiles and garments, automobiles etc. Existing demand usually has been met already in not in full, to a very substantial extent. So limited scope for increase in sales turnover exists in this catagory. So if companies want to increase sales and grow, they must create new demand. They must do reseach on in what catogaries of goods product differentiation can be made to make the product appeal more to a segment of the consumers who have higher disposable incomes. Once they have the result they can go about creating a product with a difference within an existing category or a new category, advertise extensively to make the targeted consumers aware of the new 'different product', and make the product available at outlets that the target consumers are likely to visit most. This way ...more
Answered by Subramanian Mahadevan, 24 Sep '08 10:01 pm

 
  
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2.

Yes.. business is all about supply and demand because it affects the pricing .. Pricing has an effect on sales and sales of a product influence the profit or loss a company makes.
Answered by joyoti sen, 24 Sep '08 09:42 pm

 
  
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